Hewlett Packard Enterprise (HPE) influencer group first contacted me in the mid-2010s through the Aruba networking group. I was the independent industrial IoT writer at the time. The scope broadened for a time, then they closed the influencer group a couple of years ago. But I’ve maintained a bit of a connection to HPE networking, as well as its software and high-end hardware groups.
I’m not an analyst of this part of the market, but I’d have to say this is not a surprising acquisition. HPE has been pretty aggressive under CEO Antonio Neri. They usually do pretty well at integrating acquisitions. This acquisition of Juniper Networks should be a boost.
From the news release in brief:
- Highly complementary combination enhances secure, unified, cloud and AI-native networking to drive innovation from edge to cloud to exascale
- Accelerates long-term revenue growth and expands gross and operating margin; Expected to be accretive to non-GAAP EPS and free cash flow in year 1, post close
- Advances HPE’s portfolio mix shift toward higher-growth solutions and strengthens high-margin networking business
Hewlett Packard Enterprise and Juniper Networks, a leader in AI-native networks, announced January 9 that the companies have entered a definitive agreement under which HPE will acquire Juniper in an all-cash transaction for $40.00 per share, representing an equity value of approximately $14 billion.
The combination of HPE and Juniper advances HPE’s portfolio mix shift toward higher-growth solutions and strengthens its high-margin networking business, accelerating HPE’s sustainable profitable growth strategy. The transaction is expected to be accretive to non-GAAP EPS and free cash flow in the first year post close.
The acquisition is expected to double HPE’s networking business, creating a new networking leader with a comprehensive portfolio that presents customers and partners with a compelling new choice to drive business value.
Combining HPE and Juniper’s complementary portfolios supercharges HPE’s edge-to-cloud strategy with an ability to lead in an AI-native environment based on a foundational cloud-native architecture.
Upon completion of the transaction, Juniper CEO Rami Rahim will lead the combined HPE networking business, reporting to HPE President and CEO Antonio Neri.
